Sensex gains 118 points led by bank stocks; investors get richer by Rs 1 lakh cr

Ahead of US jobs data and related concerns of traders and investors for further possible interest rate hikes, benchmark equity indices closed marginally higher on Friday, led by the auto and banking stocks.

The 30-share BSE benchmark Sensex rose 118 points or 0.19% to settle at 62,547. The broader NSE Nifty surged 46 points or 0.25% to end at 18,534.

From the Sensex pack, Tata Steel, Maruti, M&M, Sun Pharma, L&T, and Bharti Airtel closed higher, while Infosys, Wipro, HCL Tech, TCS, and IndusInd Bank ended in the red.

Two-wheeler maker Bajaj Auto on Friday touched a 52-week high and closed higher after it reported strong domestic sales in May. Meanwhile, Hero Motocorp and M&M ended near their 52-week highs after posting strong sales in May.

Sector-wise, Nifty Metal gained 1.22%, and Nifty Auto rose 0.92%. Nifty FMCG and Nifty PSU Bank also closed higher. In the broader market, Nifty Midcap100 gained 0.46%, and Smallcap100 surged 0.50%.

Meanwhile, the market capitalisation of all listed companies on BSE increased by Rs 1 lakh crore to Rs 285.12 lakh crore. The market breadth was skewed in the favour of the bulls. About 2,178 stocks gained, 1,366 declined, and 131 remained unchanged on the BSE.

Expert Views
"This week the Indian market was volatile. However, it was able to regain the momentum led by a positive domestic outlook accompanied by global cues. Auto stocks garnered attention as sales numbers for May came in strong, with a sequential recovery boosting sentiment across the sector," said Vinod Nair, Head of Research at Geojit Financial Services.

The hope that the Fed will refrain from a rate hike has provided comfort to the global equity market, Nair said.

Jatin Gedia, Technical Research Analyst at Sharekhan, said, “We continue to maintain our positive outlook on the index for a target of 18,800 from a short-term perspective. In terms of levels, 18460 – 18420 shall act as the crucial support zone while the hurdle zone is placed at 18600 – 18660."

Global Markets
Global stocks rose on Friday as sentiment was buoyed by signs the Fed will skip a rate hike at its next meeting and the approval of US debt ceiling legislation.

Europe's broad STOXX 600 index is up 1% and headed for a second day of gains, with mining stocks, up 4.4%, among the bigger movers. MSCI's broadest index of Asia Pacific shares outside Japan rose 2% earlier on Friday, with Japan's Nikkei ending the day at its highest close since July 1990.

Oil prices rise
Oil prices rose on Friday after a US debt ceiling deal averted a default in the world's biggest oil consumer, while attention turned to a meeting of OPEC ministers and their allies at the weekend. Brent crude futures rose 1.6% to $75.45 a barrel, while US West Texas Intermediate crude (WTI) was up 1.67% at $71.27.

Currency watch
The Indian rupee ended higher on Friday to record its best week in five as the dollar weakened on the back of increased bets for a rate pause by the US Federal Reserve, while persistent dollar inflows into stocks also aided the sentiment.

The rupee closed at 82.3050 against the US dollar, compared to 82.4050 on Thursday. It had reached a high of 82.28, the highest since May 17.
(With inputs from agencies)